High net worth entrepreneurs say taking risks and being lucky has played a big role in their success. Learn more.
What’s the recipe for success for high net worth entrepreneurs? Start a business, work incredibly hard, take lots of risks and wait for lady luck to find you, according to a recently published report from Spectrem’s Millionaire Corner.
The formula must work. Entrepreneurs are the most upwardly mobile high net worth investors – individuals from households with a net worth of $5 million to $25 million, not including primary residence. Entrepreneurs and business owners make up 11 percent of the high net worth, but account for the largest share (27 percent) of investors with $25 million or more.
Hard work is the key ingredient for financial success, according to our first quarter report, 2013 Ultra High Net Worth Investor: Changing Investment Attitudes and Behaviors. Virtually all investors cite hard work as a key to wealth, and high net worth entrepreneurs are no exception. Their attitudes diverge over wealth-building factors .
Entrepreneurs are less likely than other high net worth investors to attribute their wealth to education and frugality, but are more inclined to credit taking risk, being in the right place at the right time and luck. Less than two-thirds of high net worth investors as a whole attribute their fortune to taking risk, compared to 83 percent of high net worth entrepreneurs.
Learn more about the role frugality can plan in building wealth by clicking here.
Nearly 80 percent of entrepreneurs credit their success with “being in the right place at the right time,” compared to 57 percent of high net worth investors as a whole. More than two-thirds of entrepreneurs cite luck as a key wealth-building factor, compared to 54 percent of the total. Popular thought tells us that “people make their own luck,” and research suggests that people who consider themselves lucky may be better at recognizing good fortune when it comes their way. Venture capitalist Anthony Tjan calls it having “the right lucky attitude.”
Learn more about the link between “feeling lucky” and building wealth by clicking here.
Optimism appears to go hand-in-hand with a belief in luck, according to our research. More than two-thirds of high net worth entrepreneurs expect their financial position to become stronger this year, an attitude shared by 58 percent of high net worth investors as a whole.